Gov. Tom Wolf and leaders in the Pennsylvania General Assembly have been busy negotiating a state budget framework -- which was due nearly five months ago. Details of the discussions suggested that the emerging plan includes increasing the state's current tax on cigarettes.

Wolf's Spokesman Jeffrey Sheridan said an increase in the tax on tobacco products is included in the framework being negotiated, but details have not been finalized at this time.

"The commonwealth needs new revenue and all sides agree this is one way to achieve that," he said.

Pennsylvania currently taxes smokers $1.60 per pack -- making it the state with the 22nd highest state cigarette tax. The national average tax is $1.60.

Republican Senate Caucus Spokeswoman Jennifer Kocher said the cigarette tax is something that is not off the table at this point, but at the same time it's something for which there is an agreement.

Altria Spokesman David Sutton, a representatives for one of the world's largest tobacco corporations, said an increase in the cigarette tax will hurt a lot of retailers.

A cigarette tax increase will particularly hurt Pennsylvania retailers located along the border that have to compete with other states, like Ohio, Delaware, New Jersey, Maryland, New York and West Virginia.

Recently, Ohio raised their cigarette tax to match Pennsylvania's at $1.60. Sutton said those retailers are finally able to compete against the previously cheaper Ohio shops.

"For the first time in six of seven years, they now have a level playing field in terms of the excise tax rates," Sutton said. "This matters, significantly, for retailers because, tobacco products make up almost 40 percent of in-store sales for a typical convenience store across the country."

When there's a nearby state that sells cigarettes cheaper, Sutton said smokers will go to those locations to buy their products and everything else they would normally pick up at a convenience store, including gas.

As a result, he said, the retailers will sell less tobacco products and the state will not receive as much tax money as they planned for.

"All of those sales are lost to the competing business outside of Pennsylvania, Sutton said. "All of that impacts the tax revenue to the commonwealth of Pennsylvania but it also directly impacts those businesses because they've lost sales, they've lost businesses."